United Community Banks, Inc. Announces Agreement to Sell Equipment Finance Business, Consisting of Navitas Credit Corp. and NLFC Reinsurance Corp., to Funds Managed by Wafra Inc.

United Community Banks, Inc. (NYSE: UCB) (“United”) today announced the execution of a definitive agreement to sell its equipment finance business, consisting of Navitas Credit Corp. and NLFC Reinsurance Corp. (collectively, “Navitas”), to funds managed by Wafra Inc., acting through Navitas TopCo LLC (“Wafra”) for $1.9 billion in cash¹ (the “Transaction”).

The sale of Navitas reinforces United’s focus on its core Southeastern relationship banking business while enhancing United’s liquidity and capital strength.

• Attractive monetization of equipment finance business, with an estimated cash purchase price of $1.9 billion, reflecting a 7% premium to the par value of Navitas’ loan portfolio.
• United expects the Transaction to result in a one-time pre-tax earnings benefit of $109 million, which is expected to result in 3% accretion to tangible book value per share. The Transaction is also expected to generate 145 basis points of CET1 capital.
• The sale of Navitas will meaningfully reduce the risk profile of United’s loan portfolio. The equipment finance business represents 10% of United’s total loan portfolio, while accounting for approximately 50% of United’s net charge-offs for the last twelve months ended March 31, 2026.
• Net cash proceeds of $1.9 billion will result in a unique liquidity position for United, with a pro forma loan to deposit ratio of 74%. In the short term, excess liquidity is expected to be reinvested in lower-risk securities with an aggregate weighted average yield between 4.0-4.5% and target duration of less than two years.
• The Transaction will enhance United’s ability to continue allocating resources to its core banking franchise, allowing for significant financial upside through the redeployment of liquidity and capital over time.

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United intends to evaluate a range of capital deployment alternatives after closing, which may include a combination of continued organic growth of its core community banking business, balance sheet optimization, share repurchases, and opportunistic M&A consistent with the established strategy of small, in-market transactions. United expects the impact on earnings per share to be offset as excess capital is deployed over time, while concurrently lowering the risk profile of the franchise.

“Over the past eight years, Navitas has been a valuable contributor to United, delivering strong growth and returns for our business,” said Lynn Harton, Chairman and Chief Executive Officer. “In fact, for the past several quarters, we have had to restrain Navitas’ growth to remain within our self-imposed portfolio limits. We have also expanded our core franchise since we acquired Navitas, which has resulted in better in-market relationship-based growth opportunities within the community bank franchise. The sale will allow us to focus our resources on our core Southeastern markets and will allow the opportunity for Navitas to continue their growth trajectory with a well-established and experienced owner within the equipment finance sector.”

Navitas’ executive leadership team and all employees are expected to remain with the business following the sale to funds managed by Wafra.

The Transaction is expected to be completed in the third quarter of 2026 and is subject to customary closing conditions.

BofA Securities acted as exclusive financial advisor to United, and Squire Patton Boggs (US) LLP served as United’s legal advisor. Sidley Austin LLP, Chapman and Cutler LLP, and Clifford Chance LLP served as Wafra’s legal advisors.

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